UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION
SECURITIES EXCHANGE ACT OF 1934
Release No.40470 / September 24, 1998
ADMINISTRATIVE PROCEEDING
File No. 3-9720
: ORDER INSTITUTING A PUBLIC
In the Matter of : PROCEEDING PURSUANT TO SECTIONS
: 15(b)(6) AND 19(h) OF THE SECURITIES
: EXCHANGE ACT OF 1934, MAKING
Ronald Bajorek, Jr. : FINDINGS AND IMPOSING REMEDIAL
: SANCTIONS
I.
The Securities and Exchange Commission ("Commission") deems
it appropriate and in the public interest that a proceeding be
instituted pursuant to Sections 15(b)(6) of the Securities
Exchange Act of 1934 ("Exchange Act") with respect to Ronald
Bajorek, Jr. ("Bajorek").
In anticipation of the institution of these proceedings,
Bajorek has submitted to the Commission an Offer of Settlement
which the Commission has determined to accept. Solely for the
purpose of these proceedings and any other proceedings brought by
or on behalf of the Commission, or to which the Commission is a
party, and without admitting or denying the findings of fact or
conclusions of law, except those contained in paragraphs III.A.
and B. below, which are admitted, Bajorek consents to the entry
of this Order Instituting a Public Proceeding, Making Findings
and Imposing Remedial Sanctions ("Order").
II.
Accordingly, IT IS ORDERED that a proceeding pursuant to
Sections 15(b)(6) and 19(h) of the Exchange Act is hereby
instituted.
III.
On the basis of this Order and the Offer of Settlement
submitted by Bajorek, the Commission finds that:
A. From at least 1987 through 1989, Bajorek was a manager
of the Santa Barbara, California branch of Power
Securities Corp. ("Power"). During the same period,
Power was a broker-dealer registered with the
Commission pursuant to Section 15 of the Securities
Exchange Act of 1934;
B. On September 23, 1998, in Securities and Exchange
Commission v. Power Securities Corporation, et al.
(C.A. No. 90-S-1579), the United States District Court
for the District of Colorado entered a final judgment
permanently enjoining Respondent from violating Section
17(a) of the Securities Act of 1933, and Section 10(b)
of the Securities Exchange Act of 1934 and Rule 10b-5
promulgated thereunder; and
C. The Commission alleged in Securities and Exchange
Commission v. Power Securities Corporation, et al.
(C.A. No. 90-S-1579) that Respondent, during 1988,
engaged in repeated fraudulent conduct, including
directing that representatives of Power's Santa Barbara
office make fraudulent misrepresentations and omissions
in connection with the offer and sale to customers of
several penny stocks.
IV.
In view of the foregoing, it is in the public interest to
impose the sanctions specified in the Offer of Settlement.
Accordingly, IT IS ORDERED THAT:
A. Bajorek is barred from association with any broker,
dealer, investment company, investment adviser or
municipal securities dealer with the right to reapply
for association after two years with the appropriate
self-regulatory organization or, if there is none, with
the Commission; and
B. Bajorek is barred from participation in any offering of
penny stock with the right to reapply for participation
after two years with the Commission.
By the Commission.
Jonathan G. Katz
Secretary